2013 (10) TMI 267 - AT - Central Excise

CENAVAT Credit Waiver of Pre-deposit - The issue involved is of CENVAT Credit under Rule 6(3) of CENVAT Credit Rules, 2004 with respect to Pressmud generated during the manufacture of V.P. Sugar Held that - A product pressmud comes into existence which fetches some price and is held to be marketable by the Revenue - Following Manakpur Chini Mills Vs. CCE Allahabad 2012 (7) TMI 474 - CESTAT, NEW DELHI - appellant has made out a prima facie case for complete waiver of confirmed dues and penalty Stay granted.

Summary

Issues involved:
- CENVAT Credit under Rule 6(3) of CENVAT Credit Rules, 2004 with respect to Pressmud generated during the manufacture of V.P. Sugar.

Analysis:
The judgment by the Appellate Tribunal CESTAT AHMEDABAD dealt with a stay application against OIA No. CCEA-SRT-II/SSP-27/2013-14 regarding the issue of CENVAT Credit under Rule 6(3) of CENVAT Credit Rules, 2004 concerning Pressmud generated during the manufacture of V.P. Sugar. The appellant's representative cited judgments from other Benches where stays were granted for similar products to support their case.

The Revenue's representative argued that post-amendment of Section 2(d) of the Central Excise Act, 1944, the product in question became excisable. They referred to judgments from the Honorable Supreme Court to establish that the product was marketable and should be considered a manufactured product, supporting the order passed by the Commissioner (Appeals).

After hearing both sides, the Tribunal noted that the product 'pressmud' was marketable according to the Revenue. Following the precedent set by the referenced case-laws, the Tribunal found that the appellant had established a prima facie case for a complete waiver of confirmed dues and penalties. Consequently, a stay was granted on the recovery of the confirmed dues and penalties until the appeal's disposal. The decision was pronounced in court by Mr. H.K. Thakur, the presiding judge.